In major sector news, Philip Morris International (PMI) and Altria Group have confirmed they are in discussions regarding a potential all-stock merger of equals.
Both the New York Stock Exchange-listed companies have said that while discussions are ongoing, there is no assurance that any agreement or transaction will come from the talks. Any transaction would be subject to the approval of the two companies’ boards and shareholders, they added.
Any potential deal would bring together both the US and international makers of the Marlboro brand.
The shares of both companies reacted to the announcement. Altria Group’s shares jumped 3.9 points to 50.14 (+8.3%) at the start of trading on 27 August, but its shares have since dropped to 45.36 in the 48 hours since. Meanwhile, PMI’s share prices dropped from 77.75 to 69.85 (-10.2%) in the first two hours of trading on 27 August, but this has now increased to 73.6.
